Buy, Sell or Hold: What should investors do with MindTree & Wipro?

Indian market closed in the green for the second consecutive week in a row pushing the benchmark indices to fresh record highs. The S&P BSE Sensex climbed above 61000 for the first time while the Nifty50 rose above 18300.

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Sectorally, the action was seen in banking, PSU, finance, and metal stocks while profit-taking was visible in auto stocks on Thursday.

Stocks that were in focus include Wipro that rose over 5 per cent, and MindTree rallied over 7 percent. All stocks hit a fresh 52-week high on Thursday.

Here's what Vishal Wagh, Research Head, Bonanza Portfolio, recommends investors should do with these stocks when the market resumes trading today:

MindTree: Target Rs 5180

The stock has made a fresh all-time high on the back of strong quarterly results (Q2 FY22). Since the stock is trading in uncharted territory, based on Fibonacci extensions the probable targets arrive near 5180.

The stock has given a breakout after a gap-up opening in Thursday’s session and touched its all-time high level of 4936 with above average volumes but was unable to close near the highs due to some amount of profit booking.

The stock is trading well above its 21-Day EMA which is placed at 4242. The trend is extremely positive and more importantly, it is likely to continue as indicated by the ADX reading.

MACD is showing no signs of weakness, although RSI is hovering near overbought levels so some amount of consolidation can be visible in coming trading sessions.

WIPRO: Target Rs 740

The stock is making higher high and higher low formations since the beginning of March 2020 lows and will continue to do so going ahead as well.

In Thursday's trading session it posted an all-time high of 739.85 on the back of strong quarterly results (Q2 FY22) but was unable to close near it due to some amount of profit booking in the second half of the trading session.

The stock is currently trading at its 52-week high and well above its 21 Day EMA which is placed at 658. On the weekly timeframe, the stock has taken support from its rising trendline along with above average volume activity.

A strong demand zone is visible near 685-695 levels which should act as immediate supports. On the indicator front, RSI is hovering near overbought levels and showing a reading of 71 and ADX which shows the strength of the trend has again begun to give an uptick. MACD has given a positive crossover which indicates that the stock is a buy candidate.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)